Kuwait Cabinet Reshuffles KPC Board, Appoints New CEO After Dow

Kuwait’s government reshuffled the board of Kuwait Petroleum Corp., naming a new chief executive officer, and suspended “leading officials” at Petrochemical Industries Co. following a $2.19 billion compensation payment to Dow Chemical Co.

The government’s legal body was also asked to send the Dow Chemical contract file to the prosecution to probe, according to a statement posted on the Cabinet website today.

The decisions were made following an extraordinary Cabinet meeting to discuss the “massive losses resulting from this decision,” the Cabinet said in the statement. Dow Chemical said May 7 it received $2.19 billion from Petrochemical Industries, a unit of KPC, as compensation for the cancellation of a joint venture more than four years ago.

Nizar Al-Adasani was named CEO of Kuwait Petroleum, according to the statement, replacing Farouk Al-Zanki. The PIC officials suspended weren’t identified.

To contact the reporter on this story: Fiona MacDonald in Kuwait at fmacdonald4@bloomberg.net

To contact the editor responsible for this story: Shaji Mathew at shajimathew@bloomberg.net

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